New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-02-26
81
1,1e9.131 IL
bS2.S47 90
S8,296.268 &C


cs...............-....-.-.. o-l'olo IL
Total. $e,296,26s 90
Ioavng balance 1877 70 to be carried to net
or ledger assets.
MORTALITY.
Tho mortality loss in 1886 more favorable than
that In 1855 by s22o.6I1 and 100000 less
than be expected by mortality table, saving
Of more than onesxth.
Tho payment OF death losses IA tho business OF lt'o In
snrancc company They the main item In the cost OF
1t. Insurance.. Whatever affects the mortality directly
affects the cost OF nSuI ance TO companys members
In view OF many deceptive statements now being made
20 the public ought 10 be known that the question OF
favorable mortality T. not one Of small amount OF loss
OF small ratio OF loss 10 the business In force nor TO
cumstanccs which do not touch the question. II Is
question OF the proportion between tho losses to be OK
calculations and the mortality actually experienced
Tits company continues 10 seek business only In the
healthy parts Of country whore the conditions
we'll known where selection OF lives be most in
tcgcntly made where business can be most effectively
supervised. AMI can be done at minimum OF expense
The advantage Of such course toour members isnani
fest I'm the low mortnltyas compared with that expected
The average age OF policies Is perhaps greater than
IN any other company but its mortality Is "a iar Delow
tho table AMI It's savings great mt least those OF
any company proportonaly. Experience proves. what
woutbc Theoretically probable That the most pohtaDe
business T. that most carefully selected ana which u tho
most pcrs'ent We spare no pains pect OF secc-
aud lapses much smaller percentage than
those ~ any other important company. 49,
Moreover tho risk taken anv llio Is limited 20
S25 600 which fairly marks tho golden mean which,
whole ola sufficient provision for their families,
aud the other hand, Is not so great as TO create an
undue moral hazarl by exciting desperate speculation
leading excessive mortality among the largo risks
aud nnduy Increasing tho money loss and the cost OF
insurance
EXPENSES.
Tho second main tom tho cost OF insurance Is that
~ expense and this is directly controlable than
tho mortality. It's OF the greater relative importance
this time because In the last ten tho cost OF In
the members of all companies that make any
div blends their members has been very materially In
creased The great fall in tho rate OF interest has cut
dOwuthcir earnings from interest and ct much the less
10 divide Their members have either had 10 pay much
tho greater part OF their premiums In cash. rccey
ed much tho less additions to their policies Than they
would have done had tho interest rate been maintained
The ~ insurance 10 the premium payers In al com
panc- now compared with that ten twelve years
ago. IL fully ten per cent greater.
For example on liic policy Issued ut ago thirty for
$4,000. and which has run fifteen years company
must per cent interest on that TO keep that ac-
count solvent what tearns overi surplus and
may he returned TO the pocy-holder II tho company
per cent on all its funds II would earn per
cent surplus on this reserve or so go but me rate
OF interest drops 50 1t can earn only per cent then
will earn but per cent surplus; or Sl7 o. ana tho pol
with or TO buy additions TO his policy
In Wow OF tho fall in interest which has taken place
and the consequent increase In cost to pohoy holders
would have seemed but natural that managers should
have made serious effort to Offset this increase by reduc
ton In expenses Such has not been the On tho
rary this period has been chosen for unprecedented
competition for business Mt an Increase OF commits
sons 20 agents and by giving them additional commits
ons 10 throw on" 10 new insurers all which have to
como out OF the members the cost OF nsur
ALL members who come In Tor the
sake or tho rebate.
Fortunately your company has so large business al
ready It's books, OF so admirable quality and stable
a character that IL well afford TO forcgo any increase
OF its risks for many years rather than Increase them by
increasing expenses and tho cost OF your insurance and
walt for tho certain results OF prudence ana CAIN
judgment Justify its position and win It the favor OF tho
sober minded and careful buyers OF sound ana really
cheap Insurance.
expenses 1886 only per cent OF tho In
come, which Is scvcntenths OF per cent less than In
1885 materially lower 1t Is believed than In any other
company and ranging from per cent to over 40 per
cent less Than In ia most prominent RIVALS ihey seek 70
distract attention from tho vital point hero involved by
comparing expenses with now business" or some other
novel and unrelated matter. But the question "hlcn
governs actual results s How much Is reccVcu' now
much Is spent; how much Is left 1t Will not increase
tho amount left for dividends 10 compare the amount
spent with something else than the Income out vi WHICH
by tho merits OF what offer. and by presentation
OF our agencies we shall gain such aud so much
business Is In itself desirable YOU ut no increase
OF cost
INTEREST.
The rate OF interest earned In 1886 was something less
than 1885, rs was DO expected from tho gen
ea rates for money throughout the year But hey were
satisfactory under the circumstances and Afforded con-
siderable margin for surplus
striking Incident In tho long -contned decline In In
the growing difficulties In the way OF profitable
and safe Investment OF monty IL the recent sao OF
Sl577O0o 3is por cent Missouri state oohds d! i"'o
1t affords us profound satisfaction that long ago as
April 1882 We based all calculations for new business on
the assumption OF enrnng cent interest," instcau Oh
per cent which still remains tue basis VI III oher coni
panics.
RENTS or REAL ESTATE
during $50 have declined amount owing 10 inc
sale OF large producing propcrtesi puI tc
company Is thereby freed of considerapo eAposo a"o
the Interest Will DO correspondlnBV hPlo'ou
PROFIT AND LOSS.
During the year 1886 have sold seventeen %,
real estate at net profit Sl4lO02 ~ ana iour pecog
for glO555 80 less than cost balance Pont on aea
estate sales Sl3O447 o. IL received ny oAonnhao
sccures profit OF $2O.60S 70, and lost py oaoh"so'
otc S3.707 IS balance profit on ~ $40 %
Sl6S5 uO Total balance profit and loss, li'zo- w.
REAL ESTATE SALES.
During tho year 1856 the company mas soy io
81 Ola las real estate which cost Sssoof uo' "N
which was appraised In 1870 at SSJ7.o20 Il. ,,.rr
l. 10 grand total OF So $780, SO IA for property wich
cost IN So 545 TO- which the basis OF the IT,
praisai made In 1879 would have Drought oh'J
profit OF 81 GAL OF and gain over the appralsai
OF 81 37i O3i 5b make gratifying result 50 far ana u.
nsh sufficient grouDd for the belief often etprossea
that our real estate whole will prove 10 10 NO asAo
vantage ~ tho company or Its members
BONDS.
Tho company has sold during the year bonds which
cost Il s3ll 100 and has purchased others at COST OK
ss577As rs, increasing It's not holding $5i604s TO-
We now hold bonds amounting to $042S,2oo par vaiue'
which cost us 80 $780, 100 their present market vale
nj least 9 35a 286 should all those bonds DO heiu
,naturity we should $42l 900 of their cost anu